Gary Post of Port City Construction said he is pursuing redevelopment of the former Ameribank building at the corner of Clay Avenue and First Street. He intends to exercise his option to purchase the building from the city of Muskegon and is pursuing tax breaks to help with redevelopment costs.

Post said there are "several other important and exciting issues related to redevelopment of this property," but he was not ready to talk about them. Construction could begin this summer, with completion in spring of 2018, according to city documents.

The five-story building is located next to the HighPoint Flats high-rise undergoing redevelopment into apartments. It's also across First Street from Post's ongoing Heritage Square Townhomes development.

Post has renamed the building at 880 First St. the Liberty Building.

The total development cost is estimated at $6.85 million, according to city documents. Post is hoping to use Brownfield tax increment financing to reimburse about $2.6 million.

Post's plans include first-floor retail, second and third floor commercial space and residential condominiums on the fourth and fifth floor, according to documents. The plans also include underground parking.

The 54,122-square-foot building was built as Peoples State Bank in 1923 and extensively remodeled in 1972. It also was known as the Liberty Bank Building, Post has said.

The city purchased the building for $150,000 in December 2015 and sought development proposals for it. Port City submitted the only proposal, and the city entered an option agreement with Post in May 2016. The purchase price was listed as $1 though Post would put down $20,000 in earnest money that would be returned upon completion of the redevelopment. Post extended his purchase option a couple of times, but said he's now ready to complete the deal.

The city also owns a Clay Avenue lot next door to the building that had stand-alone bank drive-thru buildings on it that had belonged to former HighPoint Flats owner Comerica bank. The city has demolished the structures and filled in basements that were below them. Part of the option agreement with Post calls for the city to develop parking on that lot and an adjacent one it owns on Clay.

The agreement also calls for the city to loan $100,000 to the project.

The city will hold a public hearing at 5:30 p.m. July 11 on an amendment to include the Liberty Building project in the city's Brownfield Development Plan. Such inclusion would allow pursuit of a 30-year tax capture to reimburse Post for such redevelopment costs as demolition, asbestos abatement and site preparation.

Post is expected to also seek an Obsolete Property Rehabilitation tax freeze for up to six years.